Inheriting a property comes with a mix of benefits and problems. Getting a loved one’s home brings strong emotions, but the costs and daily hassles need attention, too. Read on if you’re thinking, “Do I need to sell my house fast, keep it, or rent it out?” Every option has its upsides, downsides, and a few what-ifs to mull over.
1. Renting the Property
Before you rent your inherited house, learn about local housing laws to avoid legal troubles. Think about refinancing the mortgage and get a professional to check and fix the house before tenants move in.
Pros of Renting
- Control: You decide the rent and pick your tenants.
- Flexibility: Rent the place for short stays or vacations to boost your income.
- Passive Income: Get a steady cash flow while you keep your day job.
- Tax Perks: Write off costs like repairs, lawyer fees, and property taxes.
Cons of Renting
- Management: Looking after the property yourself or paying someone to do it can cost money and time.
- Taxes: You must pay tax on the rent you collect.
- Risks: Tenants who pay late or cause issues can create stress.
- Maintenance: Handling repairs and safety inspections increases your workload.
2. Keeping the House
People often choose to keep inherited homes because of their emotional attachment. The house might hold precious family memories, and keeping it feels like you’re holding onto a part of your family history. But you need to be practical about the expenses involved, such as property taxes, insurance, and upkeep. Consider if the house aligns with your plans and way of life.
Pros of Keeping
- Sentimental Value: Keep a connection to your family.
- Potential Growth: The property’s value might go up over time, helping your financial future.
- Long-term Asset: You can invest in it or hand it down to your kids and grandkids.
Cons of Keeping
- Costly Upkeep: You’ll face ongoing repairs, maintenance, and surprise expenses.
- Taxes: Property taxes often run high and tend to climb over time.
- Management Challenges: Living far from the property can make it hard and expensive to take care of.
3. Selling the Inherited Property
Selling the home might be the best option if you own the property with other family members or can’t afford its upkeep. It’s also an excellent choice if the property sits in a different area or doesn’t align with your goals.
Pros of Selling
- Cash Influx: Money from the sale can clear debts, fund projects, or boost your finances.
- Easier Life: You don’t have to take care of the property.
- More Options: You can put the money into other business ideas.
Downsides of Selling
- Possible Money Loss: Quick sales might mean you miss rising property values.
- Difficult Emotions: Going through the last owner’s belongings can be challenging right after a loss.
- Tax Hit: The amount you pay in taxes may cut into your profits if you sell fast.
Sell It Now
If handling a long-term project or playing landlord feels like too much of a challenge, selling your property could be the easiest and quickest move. Your decision will depend on your financial situation, plans for the future, and emotional connections, so you should think about your options carefully.
If you think selling is the way to go but find it intimidating, 412 Houses can lend a hand! As reliable cash home buyers in Pittsburgh, we purchase houses in 14 days for a fair cash price. Also, we don’t charge any hidden fees, commissions, or closing costs!